01—Abstract
Summary
Summary of the 10-Q filed April 30, 2025. Cited figures are marked; the original filing is the authoritative source.
The Allstate Corporation reported net income applicable to common shareholders of $566 milliona, or $2.11 per diluted share, for the first quarter of 2025.
This represents a significant decrease from $1,189 millionb, or $4.46 per diluted share, in the same period of the prior year. The decline was primarily driven by a substantial increase in catastrophe losses, which rose to $2.20 billion from $731 million year-over-year, and higher realized capital losses on investments. Despite the lower net income, total revenues saw an increase of 7.8% to $16.45 billion, boosted by premium rate increases and a higher number of homeowners policies in force.
Allstate Protection underwriting income was notably lower due to these catastrophe losses, though premiums written across property-liability segments showed an 8.5%c increase. The company also continues to execute on its corporate strategy, including progress on planned dispositions of certain health and benefits businesses, which are expected to result in significant gains upon closing. Allstate shareholders' equity strengthened, and book value per diluted common share increased, reflecting the company's ongoing focus on shareholder value despite the near-term impact of severe weather events.
02—Key points
Key Highlights
- Net income applicable to common shareholders decreased by 52.4% to $566 million in Q1 2025 compared to $1,189 million in Q1 2024.
- Total revenues increased by 7.8% to $16.45 billion in Q1 2025, driven by premium rate increases and higher homeowners policies in force.
- Catastrophe losses significantly increased to $2.20 billion in Q1 2025, up from $731 million in Q1 2024.
- Allstate Protection underwriting income decreased significantly to $364 million in Q1 2025 from $903 million in Q1 2024, primarily due to higher catastrophe losses.
- Premiums written across property-liability segments increased by 8.5% to $14.30 billion in Q1 2025.
- The company expects to record significant gains from the dispositions of its employer voluntary benefits business (closed April 1, 2025) and group health business (expected to close in 2025).
- Allstate shareholders' equity increased to $22.06 billion as of March 31, 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed April 30, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $16.45B$15.26B | +7.8% |
| Net Income | $595.00M$1.22B | −51.1% |
| EPS (Basic) | $2.13$4.51 | −52.8% |
| EPS (Diluted) | $2.11$4.46 | −52.7% |
| Shares Outstanding (Basic) | 265.30M263.50M | +0.7% |
| Shares Outstanding (Diluted) | 268.80M266.50M | +0.9% |
05—Questions
Frequently Asked Questions
What was the primary driver of the decrease in net income for the first quarter of 2025?
The primary driver of the decrease in net income for the first quarter of 2025 was a substantial increase in catastrophe losses, which rose to $2.20 billion from $731 million in the prior year's comparable period. Higher realized capital losses on investments also contributed to the decline.
How did the company's property-liability insurance segment perform?
The Allstate Protection segment's underwriting income decreased significantly to $364 million in the first quarter of 2025, down from $903 million in the first quarter of 2024. This was primarily due to the impact of higher catastrophe losses. However, premiums written in the property-liability segments increased by 8.5% to $14.30 billion, reflecting higher auto and homeowners insurance premiums and an increase in homeowners policies in force.
What is the status of the company's planned divestitures?
Allstate has made progress on its planned divestitures. The sale of its employer voluntary benefits business closed on April 1, 2025, and is expected to result in a gain of approximately $625 million in the second quarter of 2025. The company also has an agreement to sell its group health business, which is expected to close in 2025 and result in an anticipated gain of approximately $450 million.
How did the company's investment portfolio perform?
The company's investment portfolio generated net investment income of $854 million in the first quarter of 2025, an increase from $764 million in the prior year, driven by higher market-based investment results and higher investment balances. However, net gains (losses) on investments and derivatives were $(349) million in Q1 2025, compared to $(164) million in Q1 2024, reflecting losses on sales of fixed income securities, valuation losses on equity investments, and losses on variable interests in Reciprocal Exchanges.
06—Continue